Has Amitabh Bachchan Found Another Mega-Bagger Stock Like Stampede Capital?

Amitabh Bachchan’s spectacular success means that we cannot take him or his stock picks for granted. Instead, we have to accord him the same respect that we accord to accomplished stock pickers. There may be mega bucks waiting for us in his stock picks

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Amitabh Bachchan, the great thespian and doyen of Bollywood, is the last person one would associate with the rough and tumble of stock markets. One would expect that in keeping with his staid and sober personality, he would prefer to invest in RBI Gilt Bonds or at least in trusted blue chip stocks.

However, Amitabh Bachchan has taken us all by surprise by showing a preference for ultra micro-cap stocks and that too for stocks that are unknown to regular market goers like you and me.

Stampede Capital is a shining example of this. When he bought the stock, we mocked him thinking that he had been duped into buying a junkyard stock. However, when the stock turned into a glittering five-bagger within less than a year, we had to apologize and pay him our tribute.

Amitabh Bachchan’s latest stock pick is Nitin Fire Protection Industries, a small cap with a market capitalisation of Rs. 1,250 crore. Today, he took everyone by surprise when he turned up at the counter. As the punters gaped at him stupefied, he placed an order for 15,00,000 shares in his rich baritone and coolly paid the sum of Rs. 6.45 crore at Rs. 42.99 per share.

Nitin Fire’s top brass have also been making bullish statements. Rahul Shah, ED, said that the Company is aiming to keep growing at an impressive CAGR of 20-25% over the next several years. He also stated that the Company intends to keep its margins at 15-20% and to penetrate the US market. He also stated Nitin Fire’s target is to become a “billion-dollar company” by 2020.

Nitin Fire also appears to be a sound buy from a technical perspective. According to Rahul Mohinder, an expert in technical analysis, Nitin Fire has “broken out” and has a target price of Rs. 58-60.

If you ponder over it, you will realize that Nitin Fire is a brilliant way to play NAMO’s “100-cities” and “housing for all” theme. It is only a question of time before NAMO gets cracking on these issues and when he does stocks like Nitin Fire, HSIL, Cera, Pokarna etc will take off in an upward trajectory.

Now, the only question is whether Nitin Fire will be able to match the scorching track record set up by Stampede Capital, its sibling in the Big B’s portfolio. While Stampede’s act is a difficult one to replicate, Nitin does have the wherewithal to give a good fight! Wot say?

It is exactly what most of the “so called” experts are doing. Working on INSIDE INFORMATION provided to boost share prices of the company. Porinju was also caught in this recently. Providing results details to their “Own Operators” before they are advised to the exchanges is a practice which is followed by all and sundry. Else how come sharp reactions in line with the results take place a day or two before the results are officially declared. Indian investors need a drastic solution to curb this. Something as severe as having a band of not more than 2 to 5% for two days before official declaration of the results.

Very strange. But people must remember one thing. The stock price only rises if people pay for the stock. So whoever aid for the stock to give it that massive rise is answerable. If the Big B made money, again, what can you say. I just don’t understand why Baby B and Ash baby don’t consult the Big B on investment advice.

Just had a brief look at Nitin Fire Industries. The PE is extreme. EPS is abysmal. Growth of sales has been phenomenal. PAT has been erratic and disappointing. Cash from Operation has been horrific. There is enough already to cancel any interest whatsoever of an investment in the company. How Big B continue use to invest in ridiculous companies such as these is a bit concerning. There is a clear view of tampering going on. Under no circumstances can a company like Nitin be attracting any sort of credible investment with financials such as those on display.

When it will start delivering good result for few quarter then it won’t have all those problems. So, if they anticipated it right then they can earn big. Nitin fire is on radar of analyst. I listen many times on TV. Who knows now is the perfect time when it start giving good performance!

Investment rationale expects one to invest in companies with great financials, and even better management. If one is to invest in abysmal companies hoping for a turnaround, then basically we should all dismiss every statement ever made by Charlie, Buffet, and do the opposite. One outcome is for sure, without insider trading information your strategy will lead to faster loss of money then Congress loses votes.

Big B is not credited with very astounding investment decisions in the past. Let’s see what happens this time. However, a more detailed portfolio analysis would tell as to how many times he has made money and at what percentage point. Every body would have some good calls and some bad calls. People only report good calls. So a deeper analysis is needed to draw his investment and business acumen.

Seriously, SEBI needs to take action on such insider trading. But I wonder how they can prove the link, its all circumstantial evidence which suggests that its insider trading but it will need hard evidence to prove it in the court of law. Well, other thing the investor community can do is to boycott such insider traded stocks on account of poor corporate governance.

I see this as an unethical practice on behalf of promoters who favours the big investor at the cost of the small investors like us and discloses such price sensitive information.

SEBI should ban trading on result days.
SEBI should ban all fund managers / PMS / advisors.
SEBI should first let small retail investors to buy then only let HNI buy the stock post good results.
SEBI should compensate people who bought stocks just before bad results & suffer losses. But if results are good then SEBI should let them keep the profit.
SEBI should ask RAW to monitor buy / sell just before results.
SEBI should follow China & arrest traders if they short sell falling markets.
If anyone buys & the stock goes up, SEBI should catch traders who made profits.
If every thing fails, SEBI should nuke Pak ISI as it must be behind the condition of the market & losses suffered by small retailers.
Actually if anyone makes profit he should be put behind bars because he has taken money from small retailers, as retailers never win.
Anymore ideas ?
Plz contribute ?

It was not trading.. It was pure long term investment. He did not exit the stock after it surged. He is still holding it after almost an year & the stock price is down 30%. It posted stellar Q4 ’16 results & still trading below Amitabh Sir purchase price.
Go Grab!!

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